Second Mortgages – Lifelines or Anchors?
Under the right circumstances, home equity can be your own personal golden goose and a second mortgage may be how you access it. If you’ve lived in your home for some time and benefited from a rising local economy or made extra payments to reduce your mortgage quickly, you’ve created equity you can access.
From renovating that out-dated kitchen, paying for college, starting your own business, or paying down a mountain of debt, home equity may seem like easy money, but beware, misappropriating your homes equity could land you in deep financial straits. If you are considering taking out a 2nd mortgage on your home-sweet-home, there are several things you should be aware of.